Customs valuation is an important consideration when declaring goods as an importer. Where tariffs are based on the value of the imported goods (an ad valorem duty) then the undervaluation of goods would result in underpayments of duties owed to the government. Unfortunately, valuation under the customs statute (19 USC 1401a) can be complex, particularly where there are “assists” to value, complex transaction structures, related-party transactions, and etc.
In such situations, we recommend that an importer contact an attorney experience in handling these customs valuation issues.
First Sale Valuation
First Sale Valuation (also known as First Sale for Export) was established decades ago through judicial interpretations of the customs valuation statute. Techniques developed to better use the judicial precedents, while effecting duty-savings an import transaction.